SECTION A. (10-30 points) True or False, Multiple-Choice Questions SECTION B. (70-90 points) Quantitative Questions 1. Daily demand for the ice creams at 1-Scream parlor is normally distributed with a mean of 100 quarts and a standard deviation of 40 quarts. The owner has the ice cream supplied by a wholesaler who charges $2 per quart. The wholesaler charges a $90 delivery charge independent of order size. The interest rate of capital to 1-Scream is estimated to be 25% per year. That means, your holding cost should be 25% * $2 = $0.5/quart/yr. Assume 360 days in the year. a) What is the optimal order size of each order? b) Assume that it takes 9 days for an order to be supplied. The owners would like to ensure no stock- outs in 95% of the cycles. What is the optimal safety stock the store should have? 0.706 0.792 0.802 0.812 0.824 0.834 0.849 0.856 0.95 Normsinv(x) 0.54 0.81 0.85 0.89 0.93 0.97 1.03 1.06 1.64 c) Currently the owners order 2000 quarts of ice cream when they have 1000 quarts on hand (ROP). Assume that it takes 9 days for an order to be supplied. What is the average inventory at the parlor